Is Elevance Health (ELV) Undervalued? A Fresh Look at Its True Worth

Elevance Health (ELV) continues to command attention as investors track its recent performance. Shares have delivered a 7% gain over the past month, and the company’s annual numbers reflect steady revenue growth along with a jump in net income.

See our latest analysis for Elevance Health.

Looking beyond the recent bump, Elevance Health’s share price has rebounded in the past month but is still trailing on longer-term measures. The stock’s 1-year total shareholder return is down 16%, and over three years it has lagged with a 35% total return drop. Despite steady business momentum, the market remains cautious, likely reflecting ongoing sector headwinds and questions about growth versus risk.

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Given these valuations and mixed returns, is Elevance Health now trading at a discount to its true worth? Or is the current share price already factoring in any future gains the company might deliver?

Most Popular Narrative: 8.7% Undervalued

Elevance Health's fair value, according to the most widely followed narrative, stands about 8.7% above the last close price of $342.49. This suggests that the stock may be trading at a meaningful discount, catching investors’ eyes amid ongoing industry volatility and pivotal company changes.

The company is aggressively leveraging advanced analytics, digitization, and AI-enabled tools to streamline clinical workflows, automate processes, reduce fraud, and improve cost management. These initiatives are expected to lower administrative costs, increase operational efficiency, and gradually stabilize or expand net margins.

Read the complete narrative.

Want to see what’s behind this valuation edge? There is one set of financial assumptions here that could shift long-term earnings beyond market consensus. Curious which drivers underpin that bold fair value projection? Delve into the full narrative to uncover what most investors are missing.

Result: Fair Value of $375.05 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cost pressures in Medicaid and unexpected regulatory changes could challenge Elevance Health’s margin recovery and earnings growth outlook in the years ahead.

Find out about the key risks to this Elevance Health narrative.

Build Your Own Elevance Health Narrative

If you think there’s more to the story or want to reach your own conclusions, you can dig into the data and craft a narrative in just a few minutes, Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Elevance Health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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